Power Finance Corporation launches its third public NCD issue to raise up to Rs 5,000 crore, featuring India’s first PSU zero-coupon public bond of the year.
 | |
| At a press conference at a five-star hotel in Kolkata, PFC CMD Parminder Chopra, Director (Finance) Sandeep Kumar, and Executive Director Jasneet Guram on Thursday. Image: Mudrayogi. |
Kolkata : Power Finance Corporation (PFC) on Thursday announced the launch of its third public issue of secured, redeemable non-convertible debentures (NCDs), aiming to raise up to Rs 5,000 crore. The issue reflects strong investor confidence in both the company and India’s power sector, Chairperson and Managing Director Parminder Chopra said.
Addressing reporters in Kolkata, Chopra described the robust response to PFC’s earlier bond offerings as a “clear vote of confidence” in the power sector, which she called a fundamental pillar of India’s economic growth and self-reliance. She added that PFC continues to play a critical role as a financial enabler of the country’s energy transition.
The public NCD issue, which comes after a gap of nearly 30 months, has a base issue size of Rs 500 crore along with a green-shoe option to retain oversubscriptions up to Rs 5,000 crore. It is scheduled to open for subscription on January 16 and close on January 30.
This is PFC’s third public NCD offering and the first zero-coupon public bond issue by a public sector undertaking (PSU) in the current calendar year. Chopra noted that the company’s previous public bond issues were subscribed more than five times, underscoring sustained investor interest.
The issue offers multiple series with tenures of 5, 10 and 15 years, including a zero-coupon bond option—an industry first for a PSU in the public bond market. The zero-coupon series is structured to nearly double the investor’s money over a 10-year period, with returns taxed as long-term capital gains. Other series provide cumulative interest options, allowing investments to grow to nearly three times their value over a 15-year period, offering flexibility to both retail and institutional investors.
Highlighting PFC’s financial strength, Chopra said the company has financed nearly 50 per cent of India’s installed power capacity. As of September 2025, PFC’s loan asset book stood at Rs 5.61 lakh crore. The company reported a profit of close to Rs 8,900 crore in the first half of the current financial year.
“These numbers reflect our resilience, maturity and long-term vision,” Chopra said, adding that the latest issue reinforces PFC’s commitment to supporting the power sector over the long run.
Post a Comment